Insurance Marketing Firms
The Govardhan Committee report submitted in 2007 recommended the setting up of “Distribution Companies” to have multiple tie-ups with insurers, a model akin to Independent Financial Advisors (IFA) that is common overseas. The Insurance Regulatory Development Authority of India (IRDAI) regulations pertaining to the registration of Insurance Marketing Firms were released by IRDAI on 21st January, 2015.
Salient Features of IMF
Insurance Marketing Firms (“IMF”) can be a Company or LLP or Cooperative Society; or any other entity as may be specified in the regulations. Insurance marketing firms can engage in the following activities.
• Solicitation of insurance products: IMFs are required to market products of 2 life, 2 general and 2 health insurance companies. However with regard to general insurance, IMFs can market only retail (individual) lines of products.
• Insurance servicing activities:
a) back-office activities as per the IRDAI Guidelines on Outsourcing of activities by Insurance Companies, 2011;
b) becoming approved person of insurance repositories;
c) undertaking survey and loss assessment work by employing licensed surveyors & loss assessors;
d) any other insurance related activity permitted by IRDAI from time to time.
• Marketing of other financial products through FSE:
a) mutual funds (SEBI);
b) pension products (PFRDA);
c) other financial products (SEBI);
d) banking/ financial products (RBI);
e) non-insurance products (Dept of Posts);
f) any other product permitted by IRDAI.
IMF will have a Principal Officer with experience in insurance or financial services to exclusively supervise the activities of IMF. It will also have Insurance Sales Persons (“ISP”) to solicit insurance products and Financial Service Executives (“FSE”) to market other financial products.
Max Life Insurance is progressing well and is operationally ready in terms of products and processes to support this new initiative. A dedicated team is setup to guide and support entrepreneurs exploring this distribution model to ensure a seamless incubation into this new model.
Email Id- email@example.com,
Contact Number- 01244121500; Extn- 1276